Buying a Bar Method franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Bar Method (classified mostly as Fitness and Recreational Sports Centers), totaling $4M. The median loan was $606,250, 6% lower than the $645,250 median for all SBA-financed acquisitions. 1 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of The Bar Method resale loans landed between $479,000 and $774,825.
- Lender experience exists. Fifth Third Bank alone has financed 2 The Bar Method resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Bar Method resale
The median SBA 7(a) loan for a Bar Method resale was $606,250 across 6 loans (FY2018 to FY2026). Fifth Third Bank, Coastal States Bank and First Bank of the Lake have financed the most The Bar Method resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
The Bar Method acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $1.3M | $1,294,400 | |
| FY2019 | 1 | $521K | $521,000 | |
| FY2020 | 1 | $262K | $261,900 | |
| FY2021 | 1 | $465K | $465,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $692K | $691,500 | |
| FY2025 | 1 | $803K | $802,600 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 The Bar Method acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Lenders financing The Bar Method resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fifth Third Bank | 2 | 33.3% | $1.8M | |
| 2 | Coastal States Bank | 1 | 16.7% | $803K | |
| 3 | First Bank of the Lake | 1 | 16.7% | $692K | |
| 4 | Truist Bank | 1 | 16.7% | $465K | |
| 5 | Wells Fargo Bank National Association | 1 | 16.7% | $262K |
States where The Bar Method units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New York | 2 | 33.3% | $1.5M | |
| 2 | Texas | 2 | 33.3% | $727K | |
| 3 | Massachusetts | 1 | 16.7% | $1.3M | |
| 4 | New Jersey | 1 | 16.7% | $521K |
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Questions buyers ask
How much do buyers borrow to buy a Bar Method franchise?
The median SBA 7(a) loan for a Bar Method resale was $606,250 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $479,000 to $774,825. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance The Bar Method acquisitions?
Fifth Third Bank has made the most SBA acquisition loans for The Bar Method (2, 33% of the total). Coastal States Bank, First Bank of the Lake, Truist Bank follow.
What interest rate and term do The Bar Method acquisition loans carry?
The average initial rate at approval was 7.37% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Bar Method resale riskier than other SBA-financed acquisitions?
Too few The Bar Method acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are The Bar Method units being bought with SBA loans?
New York (2), Texas (2), Massachusetts (1), New Jersey (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Fitness and Recreational Sports Centers acquisitions
- New York acquisitions
- Texas acquisitions
- Massachusetts acquisitions
- Fifth Third Bank
- Coastal States Bank
- First Bank of the Lake
- All franchise brands
Brand name as recorded by lenders in the SBA file: "The Bar Method" (franchise code S1729). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.